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Satyendra Pathak
Doha
Qatar’s budget recorded a third consecutive quarterly surplus amounting to QR0.9 billion in the third quarter of 2021, according to the public budget statement issued by the Ministry of Finance on
Monday.
With the addition of QR0.9 billion in the third quarter of 2021, the ministry said, Qatar’s total budget surplus for the first three quarters in 2021 reached QR4.9 billion.
The third quarter reflects the overall pattern of expenditure stability. Total public expenditure amounted to QR46.1 billion, representing a marginal decline of 0.3 percent compared with the previous quarter.
On the other side, total revenue reached QR47 billion in the third quarter which corresponds to a decline of 6.2 percent in comparison with the second quarter. This was driven by the 70.4 percent decline in non-hydrocarbon revenue compared to the second quarter as the substantial share of budgeted non-oil revenue for 2021 was achieved in the second quarter of 2021 due to the timing of corporate income tax collection.
Despite the anticipated drop in non-oil revenue for the third quarter of 2021, total revenue for the third quarter accounted for 29.3 percent of the 2021 budget.
Stable expenditure and lower revenue during the third quarter of 2021 resulted in a lower surplus compared to the previous quarter.
The total oil and gas revenue amounted to QR 41.2 billion, which represents an increase of 34.6 percent compared to the same period last year supported by higher oil prices.
Non-oil revenue for the third quarter of2021 amounted to QR5.7 billion representing 14.9 percent of the 2021 budget. Total non-oil revenue year-to-date reached QR30.5 billion and the expected non-oil revenue for the fourth quarter of 2021 stands at around QR6.5 billion leaving total non-oil revenue for the year at QR37 billion.
Total public expenditure during the third quarter of 2021 remained relatively stable and amounted to QR 46.1 billion, representing a slight decline of 0.3 percent compared to the previous quarter. Total public expenditure for the third quarter of 2021 accounted for 23.7 percent of the 2021 budget.
The ‘Salaries and Wages’ segment decreased 6.4 percent compared to the previous quarter. The decline is a result of the advanced payments made to some sectors, mainly to the education sector, during the previous quarter.
The ‘Current Expenditure’ segment decreased 2.9 percent compared to the previous quarter mainly due to lower interest payments in the third quarter of 2021.
Total expenditure on major projects increased by 9.1 percent compared to the previous quarter. The increase was anticipated and was mainly due to large installment payments to deliver various projects. Furthermore, newly awarded projects during the third quarter of 2021 totalled QR2.9 billion.
According to the statement, projects to be completed in 2021 include the food security project, Doha Old Port project, Lusail Light Rail Transit project and Sabah Al Ahmad Corridor project.
Total public debt increased by 3.3 percent during the third quarter of 2021 to reach QR383 billion. The increase resulted from a QR10.2 billion new domestic issuance. External debt redemption in the third quarter totalled QR0.6 billion. There was no new external issuance for the period, except for an incremental ECA drawdown.
Total domestic public debt stood at QR162.2 billion as of September 30, 2021, representing 42.4 percent of the overall public debt. The composition of domestic debt includes local bonds and loans.
Total external public debt stood at QR220.8 billion as of September 30, 2021, representing 57.6 percent of the total public debt. The external debt consists of external bonds and loans.
For the remainder of 2021, the ministry said, the total external debt repayments stood at QR1 billion. As a result, the anticipated total public debt figure for the end of 2021 is expected to be QR382 billion.
Citing data from the Planning and Statistics Authority (PSA), the ministry said that Qatar’s real GDP by 4 percent in the second quarter of 2021 relative to the second quarter of 2020. The non-hydrocarbon sector recorded a growth of 6.2 percent while hydrocarbon growth stood at 0.7 percent in the second quarter of 2021 compared to the same period last year.
“Sectors severely hit by the pandemic in 2020 and the related COIVD -19 restrictions are rebounding strongly. Hospitality, transport and storage, and wholesale and retail trade sectors were the highest performing sectors in the second quarter of 2021. Moreover, the manufacturing sector recorded strong year-on-year growth of 13.4 percent in the second quarter of 2021 and is now back to pre-pandemic levels,” the ministry said.
Real year-on-year growth of the hydrocarbon sector stood at 0.7 percent in the second quarter of 2021 primarily driven by the completion of scheduled temporary maintenance during 2020, and the operation of the Barzan project.
Real GDP growth in the first half of 2021 was 0.8 percent compared to the same period in 2020, mostly driven by the non-hydrocarbon sector. The growth trend is expected to continue in the second half of 2021 due to the recent easing of COVID-19 restrictions and the scheduled sporting and entertainment events. The 2.2 percent forecast for real GDP growth for 2021 remains unchanged, it said.
Doha
Qatar’s budget recorded a third consecutive quarterly surplus amounting to QR0.9 billion in the third quarter of 2021, according to the public budget statement issued by the Ministry of Finance on
Monday.
With the addition of QR0.9 billion in the third quarter of 2021, the ministry said, Qatar’s total budget surplus for the first three quarters in 2021 reached QR4.9 billion.
The third quarter reflects the overall pattern of expenditure stability. Total public expenditure amounted to QR46.1 billion, representing a marginal decline of 0.3 percent compared with the previous quarter.
On the other side, total revenue reached QR47 billion in the third quarter which corresponds to a decline of 6.2 percent in comparison with the second quarter. This was driven by the 70.4 percent decline in non-hydrocarbon revenue compared to the second quarter as the substantial share of budgeted non-oil revenue for 2021 was achieved in the second quarter of 2021 due to the timing of corporate income tax collection.
Despite the anticipated drop in non-oil revenue for the third quarter of 2021, total revenue for the third quarter accounted for 29.3 percent of the 2021 budget.
Stable expenditure and lower revenue during the third quarter of 2021 resulted in a lower surplus compared to the previous quarter.
The total oil and gas revenue amounted to QR 41.2 billion, which represents an increase of 34.6 percent compared to the same period last year supported by higher oil prices.
Non-oil revenue for the third quarter of2021 amounted to QR5.7 billion representing 14.9 percent of the 2021 budget. Total non-oil revenue year-to-date reached QR30.5 billion and the expected non-oil revenue for the fourth quarter of 2021 stands at around QR6.5 billion leaving total non-oil revenue for the year at QR37 billion.
Total public expenditure during the third quarter of 2021 remained relatively stable and amounted to QR 46.1 billion, representing a slight decline of 0.3 percent compared to the previous quarter. Total public expenditure for the third quarter of 2021 accounted for 23.7 percent of the 2021 budget.
The ‘Salaries and Wages’ segment decreased 6.4 percent compared to the previous quarter. The decline is a result of the advanced payments made to some sectors, mainly to the education sector, during the previous quarter.
The ‘Current Expenditure’ segment decreased 2.9 percent compared to the previous quarter mainly due to lower interest payments in the third quarter of 2021.
Total expenditure on major projects increased by 9.1 percent compared to the previous quarter. The increase was anticipated and was mainly due to large installment payments to deliver various projects. Furthermore, newly awarded projects during the third quarter of 2021 totalled QR2.9 billion.
According to the statement, projects to be completed in 2021 include the food security project, Doha Old Port project, Lusail Light Rail Transit project and Sabah Al Ahmad Corridor project.
Total public debt increased by 3.3 percent during the third quarter of 2021 to reach QR383 billion. The increase resulted from a QR10.2 billion new domestic issuance. External debt redemption in the third quarter totalled QR0.6 billion. There was no new external issuance for the period, except for an incremental ECA drawdown.
Total domestic public debt stood at QR162.2 billion as of September 30, 2021, representing 42.4 percent of the overall public debt. The composition of domestic debt includes local bonds and loans.
Total external public debt stood at QR220.8 billion as of September 30, 2021, representing 57.6 percent of the total public debt. The external debt consists of external bonds and loans.
For the remainder of 2021, the ministry said, the total external debt repayments stood at QR1 billion. As a result, the anticipated total public debt figure for the end of 2021 is expected to be QR382 billion.
Citing data from the Planning and Statistics Authority (PSA), the ministry said that Qatar’s real GDP by 4 percent in the second quarter of 2021 relative to the second quarter of 2020. The non-hydrocarbon sector recorded a growth of 6.2 percent while hydrocarbon growth stood at 0.7 percent in the second quarter of 2021 compared to the same period last year.
“Sectors severely hit by the pandemic in 2020 and the related COIVD -19 restrictions are rebounding strongly. Hospitality, transport and storage, and wholesale and retail trade sectors were the highest performing sectors in the second quarter of 2021. Moreover, the manufacturing sector recorded strong year-on-year growth of 13.4 percent in the second quarter of 2021 and is now back to pre-pandemic levels,” the ministry said.
Real year-on-year growth of the hydrocarbon sector stood at 0.7 percent in the second quarter of 2021 primarily driven by the completion of scheduled temporary maintenance during 2020, and the operation of the Barzan project.
Real GDP growth in the first half of 2021 was 0.8 percent compared to the same period in 2020, mostly driven by the non-hydrocarbon sector. The growth trend is expected to continue in the second half of 2021 due to the recent easing of COVID-19 restrictions and the scheduled sporting and entertainment events. The 2.2 percent forecast for real GDP growth for 2021 remains unchanged, it said.
